In a report published Wednesday, KeyBanc Capital Markets downgraded its rating on Carrizo Oil & Gas (NASDAQ: CRZO) from Buy to Hold, and reiterated its $28.00 price target.

KeyBanc Capital Markets noted, “We view the Company's lack of capital discipline to be harmful to value creation and the resulting free cash flow deficits that we forecast through 2014 (93%/54% outspend in '13/‘14) to expose the Company to excess risk in the event of a depressed commodity price environment given an already over-leveraged balance sheet (3.3x debt/EBITDAX YE12). At 4.8x 2014 EV/EBITDAX, we would prefer higher quality Eagle Ford operators trading at lower multiples (ROSE – 4.1x).”